Jacksonville Business Journal
Northeast Florida will take a hit from 2013 defense budget cuts.
A Center for Security Policy report shows Duval among the top five Florida counties most affected by the cuts. In a breakdown of projected economic impact by county, Duval loses the third highest revenue among Florida counties.
Cuts of 9 percent and 18 percent from 2013-2021 defense budgets were calculated in the report. The 9 percent cut comes from President Obama’s budgets for 2013-2021 were cut $487 billion — a 9 percent cut, at a minimum.
The 18 percent cut comes from a $500 billion defense budget sequestration plan to cut spending over the next decade.
For a 9 percent cut, Duval County loses about $111 million in annual revenue from 2013-2021. For an 18 percent cut, Duval loses about $222 million,
According to the report, cuts could cause more than $2.4 billion in revenue losses for the state’s defense contractors each year. Florida’s prime defense contractors made $13.34 billion in 2011.
Estimated results for other Northeast Florida counties are as follows:
For a 9 percent cut:
- Clay County-$3 million
- St. Johns County-$9 million
- Putnam County-$48,000
- Nassau County-$691,000
- Flagler County-$45,000
For a 18 percent cut:
- Clay County- $6 million
- St. Johns County-$19 million
- Putnam County-$96,000
- Nassau County-$1 million
- Flagler County-$90,000
Baker County was not included in the report.
One such company affected by the cuts is Kaman Corp. The cuts could derail the company’sgoal to hire an additional 200 people for its aerospace division in Jacksonville.
This article can be read here: http://www.bizjournals.com/jacksonville/news/2012/06/07/defense-budget-cuts-affect-florida.html